Amazon AWS Growth Forecast to Double to 38% with $200B Capex Plan
Futurum Group CEO Daniel Newman named Amazon one of their top picks for 2026, highlighting AWS growth set to accelerate from 19% to 38% next year. UBS projects AWS backlog will approach $400 billion by end-2026 and noted $200 billion in planned capital expenditures underscores robust cloud and AI demand.
1. Futurum Group’s Bullish Outlook
Futurum Group CEO Daniel Newman identified Amazon as one of the firm’s best investment ideas for 2026, noting that after a subdued start, AWS revenue momentum is poised to reaccelerate significantly. He emphasized AWS as the primary driver for renewed upside in Amazon’s overall business performance.
2. UBS Predicts AWS Growth Surge
UBS forecasts AWS revenue growth will double from an estimated 19% in 2025 to 38% in 2026, underpinned by escalating demand for cloud and AI services. The bank also projects AWS’s contract backlog will climb toward $400 billion by year-end 2026, supporting sustained mid-30% growth into 2027.
3. Elevated Capital Expenditures Reflect Demand
Amazon plans $200 billion in capital spending for 2026, a figure well above expectations that reflects continued investment in data centers, AI infrastructure and network capacity. This aggressive capex strategy is intended to secure long-term growth, leverage economies of scale and bolster AWS margins as utilization ramps up.